Responding in part to national health care reform policy, the University has adjusted its own health care programs, making Aetna its sole medical claims administrator, along with other policy changes.
The adjustments were made to keep costs as low as possible while providing health insurance benefits that are attractive to current and prospective employees, as well as to retirees. Officials announced the recent changes at the Board of Visitors' meeting Wednesday.
Some aspects of the University Health Plan present unique challenges.
"We are the only institution in Virginia that has its own self-insurance plan," said Leonard Sandridge, executive vice president and chief operating officer.
That self-funded plan made it so that significant changes, such as raising premiums by 13.3 percent, were necessary in 2009 to control cost increases, said Susan Carkeek, vice president and chief human resources officer. Such decisions were painful and unpopular, she said.
This year, premiums will remain the same for individuals enrolled in the lower-premium plan. Subscribers in the high-premium program, a group that constitutes about 90 percent of covered employees, will see rate increases between $2-12 per month.
A single employee enrolled in the high-premium program that chooses to switch down would save $444 annually, Carkeek said. Meanwhile, employees with families could anticipate savings of up to $3,192. Employees who do not choose their plans during the annual enrollment period from Nov. 1-19 will be signed up automatically for the low-premium plan.
Aetna was chosen as the medical claims administrator because it seems to meet the needs and concerns of employees, Carkeek said. The company's lower administrative costs, proactive disease management services and international provider networks served as bases for the University's decision.
With the new plan, dependent coverage has been extended from age 23 to 26, and subscribers no longer need prior authorization to access mental health services.
Administrators hope the modifications to the health plan will not lessen its value for employees
"We continue to provide a high-quality plan at less cost than the state plan," Carkeek said.
In 2009, the University health plan cost $121,6 million. It covered 13,396 employees, which represented 98 percent of the University's employees at the time. When family beneficiaries are added to the statistic, it shows that the plan covered 27,129 individuals in 2009.
-Virginia Terwilliger contributed to this article
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